China COVID jitters flare up as parts of Shanghai resume lockdown - BusinessWorld Online

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China COVID jitters flare up as parts of Shanghai resume lockdown - BusinessWorld Online
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Shanghai and Beijing went back on a fresh COVID-19 alert on Thursday after parts of China’s largest economic hub imposed new lockdown restrictions and the city announced a round of mass testing for millions of residents.

SHANGHAI/BEIJING — Shanghai and Beijing went back on a fresh coronavirus disease 2019 alert on Thursday after parts of China’s largest economic hub imposed new lockdown restrictions and the city announced a round of mass testing for millions of residents.

Shanghai residents in particular are on edge as new cases flare up after the city’s grinding two-month lockdown ended, with officials on Thursday tracing three infections to the Red Rose, a popular beauty salon in the city center that reopened when the city did on June 1. Authorities said a preliminary investigation found that some of the salon’s 16 employees did not undergo daily COVID testing as required, and that 90,000 people linked to Red Rose staff or customers had been tested.

Authorities have been keen to revive business and started to relax some curbs in May which helped China’s exports that month to grow at a double-digit pace, beating expectations, but residents, businesses and investors are wary. China’s blue-chip CSI300 index ended 1.1% lower. Several local-level authorities in Shanghai, which is home to 25 million people, have also issued notices saying residents will be subject to two days of confinement and another 12 days of rigorous testing starting Thursday.

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